Raute (RAUTE) Q2 2025 earnings summary

Executive summary

• Profitability improved in H1, with comparable EBITDA margin at 14.7% (€6.5M), surpassing long-term targets on a rolling 12-month basis, despite a challenging business environment and all segments contributing positively.

• Net sales for H1 were €95.7M, with Q2 net sales at €43.8M, both lower year-over-year due to project-based revenue fluctuations and lower order intake.

• Order intake was €27M in H1 (Q2: €12M), mainly from services, as customers postponed investments amid global uncertainty and tariffs.

• Closure of China manufacturing operations resulted in €3–3.8M of one-time costs, impacting reported EBITDA and net profit, as part of strategic restructuring to enhance efficiency.

• Operational and commercial capabilities were strengthened, positioning for improved demand in H2 2025 and 2026.

Financial highlights

• Comparable EBITDA for H1 was €13.9M (14.5% margin), up from €8.4M, with Q2 comparable EBITDA at €6.5M (14.7%).

• Comparable operating profit for H1 was €10.9M (5.7M prior year); reported YTD operating profit was €7.8M, both affected by China exit costs.

• Comparable EPS for H1 was €1.39 (0.79 prior year); reported EPS impacted by China closure costs.

• Operating cash flow in Q2 was negative (€-21.2M), mainly due to normalization of working capital, a typical pattern in project business.

• Liquidity remains strong with cash and cash equivalents at €31.6M at period end, despite negative operating cash flow and ongoing share buybacks and dividends.

Outlook and guidance

• Guidance for 2025 maintained: net sales €190–220M, comparable EBITDA €20–27M.

• Management expects an improving environment in H2 2025 and into 2026, with potential for pent-up demand to drive new orders.

• No change in guidance despite lower H1 order intake and net sales.